Gillibrand says an important provision in the Dodd-Frank Act isn't up and running yet.

"But this is a perfect example of why we need transparency and accountability. People's deposits should never be put at risk; the taxpayer should never be left holding the bag. And that's why these Dodd-Frank reforms are so important," Gillibrand said. The Dodd-Frank Act was a set of financial sector reforms that went into law in 2010.

J.P. Morgan announced last week it lost $2 billion on bad investments.

Gillibrand says banks should have money put aside to reduce the risk in case of bad investments. She says new rules are being written right now.